Descartes Continues To Benefit From Global Supply Chain Issues; FVE Steady at $69

Descartes delivered solid fourth-quarter results in typical fashion for the company, with revenue and adjusted EBITDA slightly ahead of our expectations. We view Descartes as being well-positioned to address the heightening complexity of global transportation networks, especially as the firm's portfolio grows, both organically and through bolt-on acquisition activity. We maintain our fair value estimate for narrow-moat Descartes at $69 (CAD 88) per share and see shares as fairly valued after shares have pulled back over the last several months. We see supply chain conditions persisting throughout the rest of this year especially given the conflict in the Ukraine, which may help near-term results, but ultimately believe our long-term forecast still applies.